Energy conglomerate Bangchak Corporation Plc is expanding its efforts to produce sustainable aviation fuel (SAF) by partnering with Charoen Pokphand Foods Plc (CPF), which manages a range of restaurant brands.
The collaboration agreement, signed on Monday, allows Bangchak and CPF to jointly handle used cooking oil and various fats sourced from CPF’s food production facilities, including fats from wastewater treatment plants and related companies, for SAF production through Bangchak’s subsidiary, BSGF.
SAF, a biofuel for aircraft, can reduce greenhouse gas emissions by up to 80% compared to conventional jet fuel, as reported by various forecasts.
“This partnership is a vital catalyst, empowering both companies to drive positive change and foster a sustainable future,” stated Chaiwat Kovavisarach, Bangchak’s group chief executive and president. He noted that utilizing used cooking oil and fats for SAF supports the government’s circular economic development initiative, which seeks to upcycle unwanted materials and add value.
Bangchak is promoting environmental awareness through a campaign titled “Fry to Fly” (or tod mai ting in Thai), encouraging the public to avoid improper disposal of used cooking oil, which can be harmful when reused multiple times.
“More than 800 public and private sector locations across the country are currently participating by supplying used cooking oil for SAF production,” Mr. Chaiwat added.
In Thailand, daily oil consumption reaches 1 million liters, with 250-300 million liters leftover from frying. Reusing this oil poses health risks to consumers.
Bangchak sources about 60% of the used cooking oil supplied to BSGF domestically, with the remaining 40% imported. The construction of their SAF factory in Bangkok is currently 70% complete, with a production capacity of 1 million liters per day expected to commence operations in the second quarter of 2025. This production capacity is projected to meet aircraft fuel demands until 2030, according to Mr. Chaiwat.
European regulations require that aircraft flying to Europe include SAF as 1% of jet fuel starting next year, with the percentage increasing to 5% by 2030.
Prasit Boondoungprasert, CPF’s chief executive, expressed that the collaboration with Bangchak aligns with CPF’s Sustainovation strategy, which leverages innovation to enhance food security and promote sustainable consumption. He also sees the potential for expanding this initiative to CPF’s international operations in the future.
